CVS Caremark CEO Merlo's 2011 Pay Jumped 29% To $14.1 Million

Total pay for CVS Caremark Corp.'s (CVS) chief executive and president, Larry J. Merlo, grew 29% to $14.1 million last year, according to a filing with the Securities and Exchange Commission.

The drugstore retailer and pharmacy-benefits manager disclosed that Merlo's base salary, option awards and nonequity incentive-plan compensation all increased, while stock awards were lower.

Merlo first joined the company in 1998 and has served in several executive roles, including chief operating officer and president of CVS/pharmacy. He took on his current roles a year ago.

Chief Financial Officer Dave Denton's total pay jumped 35% to $4.6 million. Denton has been with CVS since 1999.

Per Lofberg, president of CVS Caremark Pharmacy Services, saw his pay decline 55% to $7.1 million, as he joined CVS at the beginning of 2010 and was thus awarded a $1.5 million bonus and $7 million in stock awards during the prior-year period.

President of CVS/pharmacy, Mark Cosby, joined CVS last September and was compensated $9.6 million last year. That figure includes a nearly $1.4 million bonus and over $7 million in stock and option awards.

CVS's shares ended last year with a 17% gain, exceeding the broader market's growth as investors and analysts praised the company's integration of pharmacy-benefits manager Caremark. CVS has touted the success of its MinuteClinic retail health-care centers, and observers are banking on the retailer to benefit from the contract expiration between rival Walgreen Co. (WAG) and PBM Express Scripts Inc. (ESRX).

CVS shares closed down 0.5% to $44.88 and were flat after hours. The stock is up 10% this year.

-By John Kell, Dow Jones Newswires; 212-416-2480; john.kell@dowjones.com

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